Gordon Powers wrote an article last week that I’m sure was passed around our industry and many other industries suffering from baby boomer retirements in record numbers over the next ten years.

The article entitled, “Phased retirement slowing catching on,” talks about Canada’s aging work force and the increased pressure that puts on employers to attract the best and the brightest talent.

The nuclear industry in North America is looking at a 40% rate of retirement of its work force over the next 10 years.  That is a lot of knowledge walking out the door of Canada’s highly technical companies, leaving many scrambling to find a balance between getting work done while at the same time transferring skills and knowledge to younger employees.

Powers quotes an Investors Group report that 58 % of all working Canadians -- and 67% of those are in the 45 to 64 baby boom age group -- definitely plan on working in retirement.

I think a phased retirement may be the answer industries are looking for. Providing employees with the opportunity to transition to retirement at their own pace instead of quitting work ‘cold turkey’ and allowing employees to continue to reduce their work week while at the same time increasing their hobbies and other interests sounds like a far more civilized approach to retirement.

Powers tell us in his article that “Ottawa has changed the pension rules so that workers 55 and over, who are eligible for a full pension from a defined benefit plan, will be able to draw as much as 60% of their pension while still continuing to work and earn benefits. Under the new plan, as income decreases with lower hours of work, pension payments can actually increase.

Currently, the only provinces that permit this sort of phased retirement are Alberta and Quebec, although Manitoba has introduced legislative amendments to join them, and many provinces are expected to follow. For federally-regulated employees, the federal government has also taken steps to eliminate many of the obstacles to phased retirement.”

Perhaps we all should be championing changes in our employment contracts and government policy that would afford older workers the opportunity to remain an active part of the workforce after retirement, providing them with an opportunity to share their knowledge and others an opportunity to learn from their experience. It would bring the next generation of workers up to speed much quicker and help companies deal with knowledge transfer.

I think this change would have huge implications on how we manage our long-term career goals. Would you take advantage of a life transition to retirement instead of the traditional “gold watch” see-you-later approach? Would this approach work well in your department?

Read the full article for more information on the financial benefits of the phased retirement approach.